Recent macroeconomic developments, such as new tariff plans and a restructured SEC, have made magnanimous changes in the crypto and trading sector. Experts believe that a newly-structured SEC can change the very face of the American crypto landscape. It can overhaul how these assets work and the benefits they can offer.
In a recent report by Bloomberg, Christopher Waller said that the new structure of the SEC and stablecoins could expand the overall reach of US dollars on a global scale. However, Waller was heard emphasizing that this can only happen if there is a clear set of rules that apply to the landscape as a whole.
In a recent conference held in San Francisco, Waller stressed that the stablecoin landscape needs a regulatory framework. This framework should elucidate stablecoin risks “directly, fully, and narrowly.” Waller added, “This framework should allow both non-banks and banks to issue regulated stablecoins and should consider the effects of regulation on the payments landscape.”
Understanding Stablecoins
Stablecoins are digital assets that do not change like other cryptocurrencies like ETH and BTC. Stablecoins retain their innate value as they are typically tied to a fiat currency. Therefore, these assets derive their value from the currency itself. Two of the most popular stablecoins are the USDT and USDC. These currencies are pegged to the US currency, and their value is derived from the currency itself.
Waller is not the first person to bring this to the forefront. Federal Reserve Chairman Jerome Powell also suggested this in 2024. Powell supported building a framework for stablecoins. Powell stated, “We need a framework for stablecoins [and I’m] very supportive and am glad that we are close.”
A year later, after the rigorous restructuring of the SEC, a regulated body of stablecoin was finally created. This will help the community formulate a more regulated and lawful landscape for crypto and help America further its currency’s dominance over the world with ease. Follow for more crypto news.
